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STUCK WHAT SHOULD I DO?

Investor from Albany, New York

posted almost 4 years ago

Hi Everyone,

i have a bit of a situation and don't really know what i should do. I am currently in discussion with 2 homeowners who have similar issues regarding the homes they want to sell. Both homeowners have a mortgage on the property and need out quick, one property already has 2 tenants living their and collects 2,200 every month and the mortgage is only 1200. However the owner pays the utilities and is facing a divorce so whatever is left over goes directly to the wife. The other home owner is a woman that needs to leave her home because she wants to move down south to take care of a sick family member. I do not want to landlord any of these properties because seeing as i am still starting out if something goes wrong in the house i will not have the money to fix it. So i want to put them under contract and sell the contract but don't really know how i would go about wholesaling these deals can anyone help?

Wholesaler from Wentzville, Missouri

replied almost 4 years ago

@George Laboy I am not sure about the first property you mentioned, with the wife/husband/divorce situation. You would need both of them to sign off on the contract and getting them to agree on a price may be difficult depending on their situation.

The second property sounds better, You can get it under contract...but what are you going to offer? First you need to do some homework, find out what the home is worth in its current state, if it is distressed, how much to get it rental ready or for a retail sale? Also finding out how much the woman currently owes on the home, if anything would be beneficial as well. How motivated is she to move down south...is she just thinking about it or is she ready to pack up and be gone tomorrow? That answer will help determine your offering price to her.

Investor from Albany, New York

replied almost 4 years ago

Thank you for your response Travis, i honestly don't know what i should offer her, she owes about 64,000 on her mortgage and she paid 70,000. I do not want to attempt a short sale because i do not want to damage her credit, i was thinking about wholesaling this deal to an investor who will just take over her payments and rent the place out. When signing the contract do i write the amount for only my assignment fee? Is it a different contract that i should use? The place isn't in much distress just a couple of worn cabinets, a small hole in the ceiling due to a small water leak, and the sidings could use some cleaning. She is motivated to move contingent upon what i have to offer her.

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